Hanjin chairman talks of reform

Hanjin Group chairman Cho Yang-ho on Thursday stressed restructuring efforts, saying that the company must achieve profit this year.

One way to fulfill the goal would be branch out of Korea and avidly develop overseas markets, he stressed.

“Our employees who are stationed abroad must become experts on their local markets in order to satisfy our overseas customers,” the chairman said at an executive-level seminar that brought together 116 executives at Hyatt Regency Hotel in Incheon City.

He also called on the top brass to renew their sense of determination and undergo a head-to-toe reformation for the group to swing into the black.

Hanjin’s financial health has been questioned following its decision to offer its troubled affiliate Hanjin Shipping a 150 billion won ($132 million) loan.

The company’s flagship Korean Air also is expected to post an annual net operating deficit of 37.3 billion won ($34.9 million) for the first three quarters of 2013.

Referring to Korea’s eventual success in hosting the PyeongChang Winter Olympics, Cho pointed out that ultimately, it was the people and their passion and determination that made it all happen.

Mentioning the difficult times that most carriers are going through in the country ― and possibly around the world ― due to fewer passengers coupled with high fuel costs, Cho said they were suffering because they had not adequately adapted to the changing business environment.

“We must be prepared to change with the times, and also become capable of accurately predicting the markets so that we can put forth adequate strategies,” Cho said.